The 2nd mortgage holder is BOA which I'm told is not very responsive to these types of scenarios.  

I get this because there is no comps in the area with quite the same location scenario and the closest comps sold for 200 - 225 but had significantly less sq footage. like 6-800 less.

A common one for the brand new buy and hold landlord with their first rental unit is what I call hgtv syndrome or simply over-remodeling.

It needs 40k-60k repairs worst case scenario.

I thought It would be the perfect scenario to start my real estate investment because I will have reliable renters.

Every loan pricing scenario is unique in itself. 

@Mark NeigerHard to give specific advice on strategies without knowing your resources, time availability, and market.Poke around on BP for a while as this question has been asked many times.The only common denominator I've found with all methods is patience and persistence.Good luck.

I hope I am asking the correct question:If I am purchasing and improving a flip with the following scenario, how would the interest being deducted in terms of when I capitalize on the property?

The boat slips are rented seasonally, paid up front, and currently generates $2,000/month (when averaged over the year).Total monthly income: $11,250 ($135,000/year)Expenses run very low, from what we can tell, listed annual expense:RE Taxes :12,000Insurance: $6,500Water + Common Electric: $3,000 (heat and hot water is paid by tenant)Maintenance + Repairs: $2,000Management: $10,000If we do 40% down ($700,000) and finance $1,050,000 @ 4% over 15 years: $93,300.Add for vacancy, misc, etc...  

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